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4PL
Page 8
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TOG raises standards through KPIs
TOG SAYS it has raised standards in the transport operations of a major building materials company by introduorng a set of key performance operators (KPIs).
Under its eight-year fourth-party logistics (4PL) agreement, which started last November, TOG has been managing 100 hauliers based at 42 sites used by Aggregate Industries. As part of the contract, TOG has introduced a series of KPIs to encourage uniform standards in areas such as health and safety for its contracted hauliers. A team of 23 TOG staff at Linby, Nottinghamshire, procure haulage services and plan routes to minimise empty running.
Paul Hayes, head of TOG 4PL. says: "We analyse near misses, delivery performance, delivery failure and see if anything can be done better. The hauliers involved in the project are good, reputable firms, and we have had a lot of support from them," Karl Hudson, supply chain director, building materials division at Aggregate Industries, which includes its Chardon, Bradstone, Fyfestone and Masterblock subsidaries, says it has taken time for technology to catch up with the concept of 4PL, "We now have email, internet, mobile phones and vehicle tracking. All these things have meant that running a 4PL operation like TOG is doing is much easier than it was a few years ago.'
Aggregate Industries believes its decision to let TOG manage its transport operations will help it save more than three million road miles a year.